COVID-19 Legal Series (7): Will the Pandemic Impact Enforcement of Foreign Arbitral Awards in China?

April 09, 2020 | BY

Vincent Chow

China's support for its businesses' force majeure claims is raising questions about enforcement of foreign arbitral awards

                               Facade of the Supreme People's Court in Beijing, China

Disputes involving Chinese parties are mounting each day as disruption to international contracts and supply chains continues to grow amid the global pandemic. In response, China's Council for the Promotion of International Trade (CCPIT), a semi-governmental organization that promotes foreign trade, has been issuing force majeure certificates to local businesses struggling to meet their contractual obligations.

Many foreign businesses with dealings with Chinese parties are asking what the significance of these certificates is as they prepare for the inevitable legal and economic fallout in the weeks and months ahead. There are question marks especially surrounding international arbitration, the prevalent dispute resolution method for cross-border commercial transactions.

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